China’s Vice Minister of Commerce Li Chenggang has stated that China and the United States have reached a consensus on major trade issues following “frank and constructive” discussions

The United States and China have reached an initial framework for a potential trade agreement that will be discussed when their leaders meet later this week, U.S. Treasury Secretary Scott Bessent said.

Speaking to CBS, the BBC’s U.S. news partner, Bessent said the framework includes a “final deal” concerning TikTok’s U.S. operations as well as a pause on China’s newly tightened controls over rare earth mineral exports.

He also noted that he does not expect the 100% tariff on Chinese imports threatened by President Donald Trump to take effect, while China will resume large-scale purchases of U.S. soybeans. Both sides are aiming to prevent a renewed escalation in the trade tensions between the world’s two largest economies.

President Trump and Chinese President Xi Jinping are scheduled to meet Thursday in South Korea. Bessent held talks with senior Chinese trade officials earlier this week on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Malaysia, which Trump is attending as part of his Asia tour. Beijing described the discussions as “constructive.”

Bessent said both countries had “reached a substantial framework for the two leaders,” adding that “the tariffs will be averted.” The Chinese government later stated that the negotiating teams “reached a basic consensus on arrangements to address their respective concerns” and agreed to “further finalise specific details.”

Since returning to the White House, Trump has imposed and threatened broad tariffs on imports from various countries, arguing that the measures support U.S. manufacturing and employment. His administration’s trade tactics have already pushed several nations, including the United Kingdom, to pursue new trade agreements with Washington.

However, China has been the primary target of Trump’s steepest tariff threats. Beijing has responded with countermeasures of its own, though both sides agreed to suspend implementation of new duties while pursuing a broader deal.